Those who are in the market for making money look for those stocks which are in strong hands. Others look at valuations. Keep cribbing about bubbles and busts, but that does not work with stocks like LinkedIn. Here, future potential is the main thing to consider. On that front, LinkedIn seems to be great with increasing number of users. The users are expected to be more loyal compared to those on social networking sites like Facebook. There are no major competitors to LinkedIn, and it has a huge competitive advantage in the space anyway. It is alive to the requirements of the market and keeps making important changes to the platform. Increased usage on mobiles may help in faster growth of the top line. New services / improvements to existing services like the influencer program only add to the usage and the number of users. The influencer program highlights the power of social networking as some of the influencers get millions of hits. Even other segments of the social media space, like native advertising / social media sponsorship, thrive on this power of the celebrities to influence. IZEA a company in this space posted record numbers recently. The bottom-line is not too much of a consideration for LinkedIn now because the company is still relatively young. The cash on books is $873 million, and LinkedIn is a zero debt company. In any case, it is not making a loss. The cash is used for acquisitions and development of its existing platforms, which may help in future growth. Some analysts have increased the price target for the stock after the Q2 earnings. So what is important is for the company to keep growing, perhaps the bottom-line growth will come in due course. The current valuations do not make sense if viewed in isolation. So it is good to keep tagging along with an exit strategy in mind.